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VW, Rivian, Nissan, BMW, Genesis, Audi and Volvo lose EV tax credits starting tomorrow

The U.S. Treasury said Monday that Volkswagen, BMW, Nissan, Rivian, Hyundai and Volvo electric vehicles will lose access to a $7,500 tax credit under new battery sourcing rules. The Treasury said the new requirements effective Tuesday will also cut by half credits for the Tesla Model 3 Standard Range Rear Wheel Drive to $3,750 but other Tesla models will retain the full $7,500 credit. Vehicles losing credits Tuesday are the BMW 330e, BMW X5 xDrive45e, Genesis Electrified GV70, Nissan Leaf , Rivian R1S and R1T, Volkswagen ID.4 as well as the plug-in hybrid electric Audi Q5 TFSI e Quattro and plug-in hybrid (PHEV) electric Volvo S60. The Swedish carmaker is 82%-owned by China’s Zhejiang Geely Holding Group. The rules are aimed at weaning the United States off dependence on China for EV battery supply chains and are part of President Joe Biden's effort to make 50% of U.S. new vehicle sales by 2030 EVs or PHEVs. Hyundai said in a statement it was committed to its long-range EV plans and that it "will utilize key provisions in the Inflation Reduction Act to accelerate the transition to electrification." Rivian declined to comment and the other automakers could not immediately be reached for comment. Treasury also disclosed General Motors electric Chevrolet Bolt and Bolt EUV will qualify for the full $7,500 tax credit. GM said earlier it expected at least some of its EVS would qualify for the $7,500 tax credit under the new rules, including the 2023 Cadillac Lyriq and forthcoming Chevrolet Equinox EV SUV and Blazer EV SUV. Treasury said all GM EVs will qualify. Earlier, Ford Motor and Chrysler-parent Stellantis said most of their electric and PHEV models would see tax credits halved to $3,750 on April 18. Treasury confirmed the automakers' calculations. The rules were announced last month and mandated by Congress in August as part of the $430 billion Inflation Reduction Act (IRA). The IRA requires 50% of the value of battery components be produced or assembled in North America to qualify for $3,750, and 40% of the value of critical minerals sourced from the United States or a free trade partner for a $3,750 credit. The law required vehicles to be assembled in North America to qualify for any tax credits, which in August eliminated nearly 70% of eligible models and on Jan. 1 new price caps and limits on buyers income took effect.

Cadillac could 'flourish' in Australia, says marketing chief

Cadillac might have its best product mix in recent history, and GM's luxury brand is looking to expand. In fact, it might even be making a trip Down Under, at least according to the company's global marketing chief.
Uwe Ellinghaus spoke with Australian site Car Advice at the Geneva Motor Show and said the brand could be quite successful there. "[The] goodwill that the Cadillac brand has is such a good starting base that once we get proper volume commitment and a dealer network behind it we can easily flourish," he said, though he warned that the plans are still in their earliest stages and years away. First, Cadillac will expand in markets with the highest possible sales, like China and Russia.
Ellinghaus said that the most likely models for Oz would be the SRX, Escalade and CTS; the latter would probably act as a replacement for the Holden Commodore. GM's Australian arm is ending local production in 2017, and there have been many rumors about what is happening to the big sedan. However, Ellinghaus admits exporting cars from the US to Australia is going to mean higher prices. In addition to the expense, Cadillac doesn't currently build any right-hand-drive models. It would likely take until the end of the decade before the Aussie models could be ready.

2016 Cadillac ATS-V First Drive [w/video]

If you get hot and bothered for hot-rodded sedans and coupes, you probably know that Germans have long dominated that cutthroat scene. For years, the Audi RS/BMW M/Mercedes-AMG triumvirate has ruled the microcosm of grunty, mid-level luxury cars. But a funny thing happened when Cadillac's first V car hit the market in 2004. Since the CTS-V crashed the high horsepower party, German tuning houses started thinking less about the "Daddy's Caddy" stereotypes and more about the next imminent threat – in this case, the inevitable high-horsepower spinoff of the smaller, nimbler Cadillac ATS. The standard ATS' defense against the German triad hasn't been triumphant so far (GM's Michigan plant was idled for three weeks in 2014 due to excess inventory), but the souped-up 2016 Cadillac ATS-V presents a fresh bid to put the Teutonic competition on alert. The ATS-V's flared bodywork and quad exhaust pipes offer bits of visual shock and awe, but significant hardware upgrades back up the go-fast looks. Front and center is a twin-turbocharged, 3.6-liter V6 with reworked internals including a charge-air cooler, titanium connecting rods, and titanium-aluminide turbines. The new engine produces 464 horsepower and 445 pound-feet of torque, up a staggering 262 hp and 173 lb-ft compared to a base, four-cylinder ATS. Those output figures eclipse the BMW M3/M4 (425 hp, 406 lb-ft) and Audi RS5 (450 hp, 317 lb-ft), but lag slightly behind the V8-powered Mercedes-AMG C63 (476 hp, 479 lb-ft), and more so the C63 S (503 hp, 516 lb-ft). The chassis benefits from several structural braces, most notably a shear panel intended to boost front-end stiffness. Extra poundage from the add-ons are minimized through lighter-weight materials – in the case of the shear panel, stamped aluminum. Cadillac says though it intended to make the ATS the quickest car in its segment (stated 0-60 mph times between 3.8 and 3.9 second virtually match the BMW M4 and Mercedes-AMG C63 S' 3.9 figure), the development team says they also focused on subjective qualities like turn-in quickness and steering response. As such, toe links have been replaced with ball joints, mounts have been retuned, and reworked magnetic damping offer greater responsiveness. Six suspension bushings have been stiffened and ten have been completely redesigned, and the Performance Traction Management system that tames beasts like the Corvette Z06 and Camaro ZL1 also helps lay down power in the ATS-V.